Simulation has its inherent weaknesses in that: 1) there is no pressure since, you are never at risk of losing monies, 2) slippage which is real cannot be accounted for in simulation, 3) the crazy things you do when there is monies on the line cannot be replicated but, is still real. Common sense would dictate that you take live trades, risking only 1% of your capital and take only a few positions, maybe, 3 positions to start off. That would give you a better idea of your trading acumen or lack thereof. You cannot fake something that is live. Trading is a lot simpler. Trade with the trend, making sure your trades are aligned with the major trend. Set stop losses always. Limit losses by proper position sizing risking no more than 2%. Place no more than 5 positions (my rule) at any given time. That caps your possible loss at 10% on a worst case scenario, of losing all 5 trades and all your monies in those trades. Chances are good, you will not lose all those monies if you use stop losses. Most times, you will probably, lose 0.50% of your capital when you lose. Now, all you need is to make is several multiples of your average loss, when you win and you are ahead of the game.
i am trying to develop a strategy that is why i am using sim.......it is as simple as that........ and trading is fucking difficult .....i know that....i do not want to make it even more difficult by worrying about money
what i am trying to find is a way to know at a exact point or price that i am wrong and have to get out. till now, in my 13 years of day trading, i have been trading subjective strategies that do not point out when the original premise is wrong and i have to close. i am now testing a new strategy where i am able to know when the original premise is wrong. this is a fantastic break through for me. i will trade it in demo for 1-2 days and if satisfied i will go live